Home prices have continued to rise month over month in the North Okanagan and Shuswap. There was a slight rise in September and another 3% rise again for single family homes again in October. However sales were down again month over month and new listings continued to increase. We see this as a ‘re-balancing’ of the market, moving from more of a sellers’ market to one that is more even between home buyers and home sellers. The Canadian economy is still going strong and interest rates climbed up in September. The Bank of Canada is also poised for another possible increase in December as well.
So what does that mean for you? Well, home prices are slowing and sales are down, which will eventually lead to downward pressure on home prices. This past month homes are taking an average of 76 days to sell, which is down from last year, and down slightly year to date. All this means is now is the time to get your house sold while the prices are still up and homes are selling. This strength may not last for many more months. If the interest rates climb again in December it could really slow the market down.
Where are they coming from?
The other thing we look at is where the buyers are coming from and what kind of buyers are we seeing. First-time buyers make up 16% of the current buyers in the market, although two-parent families with children topped the list at 30% of buyers. Those buying for revenue or investment purposes were 14%. Typical for the region, the largest buyer group, at 56%, comprised those who already live in the area. The next largest groups being those from the Lower Mainland/Vancouver Island at 21% and those from Alberta at 12%. The reality is that 84% of the buyers are BC residents!
One continued bright spot is the sales of lakeshore homes. Sales of properties on the lakes in the North Okanagan have remained strong and are up 13% for the year, with a higher average sale price and selling faster than this time last year! So now is the time to take advantage!
For full details on the Okanagan Mainline Real Estate Board click here.